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Two-child Benefit Cap and Child Poverty

11 July 2023

Lead MP

Kim Johnson
Liverpool Riverside
Lab

Responding Minister

Guy Opperman

Tags

Social CareHousingEmploymentEnergyBenefits & WelfareChildren & Families
Word Count: 3981
Other Contributors: 7

At a Glance

Kim Johnson raised concerns about two-child benefit cap and child poverty in Westminster Hall. A government minister responded.

Key Requests to Government:

Johnson urges the Government to lift the two-child benefit cap immediately to raise 1.1 million children out of poverty at a cost of just £1.3 billion. She calls for enhanced workers' rights to ensure that work pays enough to live and raise a family, advocating for universal free school meals to alleviate child poverty.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Liverpool Riverside
Opened the debate
The two-child benefit cap has resulted in an increase in child poverty, particularly affecting larger families, Black and ethnic minority families, single-parent families, and those who rent. In Liverpool Riverside, 11 children out of every 30 are living in poverty, with many more ineligible for extra support due to the cap. Kim Johnson cited statistics from the Joseph Rowntree Foundation showing that child poverty rates among larger families increased significantly between 2012-13 and 2019-20. The policy has forced some women to disclose traumatic personal details to receive support, leading to severe psychological impacts. Families affected by the cap are losing an average of £3,235 annually.

Government Response

Guy Opperman
Government Response
It is a pleasure to serve under your chairmanship, Mr Pritchard, and I congratulate the hon. Member for Liverpool, Riverside on securing the debate. The Government believe that supporting people's living standards through work, better skills and higher wages is crucial. In 2021-22, children in households where all adults were employed were five times less likely to be in absolute poverty after housing costs than those in workless households. Since 2009-10, there are 1.7 million fewer people and 400,000 fewer children in absolute poverty after housing costs. The Government increased the benefit cap levels by 10.1% from April 2023, allowing up to £26,500 nationally or £31,300 in London, including a national living wage increase of 9.7%. Over the past two years, the taxpayer has contributed £94 billion of support to vulnerable households with ongoing measures such as an energy price guarantee until March 2024 and cost of living payments of £150 to 6 million people. Additionally, there is a winter fuel payment worth £300 for over 8 million pensioner households. The Government's policy aims to provide strong work incentives and support while ensuring fairness to the taxpayer. Universal credit offers additional help with eligible childcare costs regardless of the total number of children in the household, encouraging people to move into work. In conclusion, there is ample evidence showing that children are supported by the social security system through benefits increases, cost of living support, national living wage uprating, and jobcentre support for in-work progression.
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.